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Here is an aopa article from yesterday about the Searey.
https://www.aopa.org/news-and-media/...m_medium=email

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May just be coincidence, but after I wrote AOPA and AvWeb last week, “Why no news or updates on SeaRey in all of aviation news? Are they open or closed? Why the news blackout?” I got an email back from AOPA saying it is strange and the company seems to have shut off phones and ceased ops. Now AOPA did an article updating situation. Glad they got some info out.

Interesting to note all the foreign investment in US aircraft manufacturing. I didn't realize China had hooks in so many companies. Cirrus has seemed of got the most of it, but what is baffling to me is the how after China Aviation Industry General Aircraft bought out the majority shareholder ARCAPITA to take control of Cirrus, but 9 months later ARCAPITA went into CH11 and sold off all their assets. May have been incredible timing and luck, or a well executed preplanned backroom strategy to save Cirrus, but Cirrus seemed to have narrowly missed a crippling blow of having their major shareholder filed Ch11 under their roof.

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Sounds like you were instrumental in getting this info out, while they were sleeping.

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Yeah, just got an email from the person I emailed letting me know the if is now out...

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I’m relatively new to Icon. I wasn’t aware that according to ChatGPT. This is not the first time for Icon.

From ChatGPT….

Icon Aircraft filed for Chapter 11 bankruptcy in April 2017. The company emerged from bankruptcy and completed its restructuring in April 2018, allowing it to continue its operations with a stronger financial foundation.

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I have gotten junk out of ChatGPT. It only knows what it knows, and makes up the rest.

I ask someone inside ICON who has been there for years and it was news to them.

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That’s why I was surprised that it wasn’t mentioned here before. ChatGPT has come a long way, but I guess still has to be taken with a grain of salt.

One time Waze gave me directions to get off the highway at the rest stop. A rest stop that can only go back on the highway.

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Oh, I had that just the other day with Waze where it had me going a crazy direction and circling back to do a U-turns when all I need to do is make a legal left turn. ????????????

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Now ChatGPT has us going in circles. I can’t find anything on a 2017 Bankruptcy. Wonder where it got that from.

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Like I said, there has been documented searches where it was determine ChatGPT falsified references to support what it was saying. If it doesn’t know, it just makes it up.

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Here is what I got:
Did the ICON Aircraft Company final bankruptcy in 2017?


ChatGPT
No, the ICON Aircraft company did not file for bankruptcy in 2017. However, the company did face financial challenges and underwent restructuring in the years leading up to 2017. ICON Aircraft, known for its production of light sport aircraft, has had a somewhat turbulent financial history, but as of my last update in January 2022, it hadn't declared bankruptcy. For the most current information, you might want to check recent news sources.

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I tried again. Asking what’s going on with the Icon A5 and the bankruptcy.

ChatGPT
ICON Aircraft, the manufacturer of the ICON A5 amphibious light sport aircraft, filed for bankruptcy protection in 2017. The company faced financial challenges related to production delays and cost overruns. However, ICON Aircraft restructured and emerged from bankruptcy in 2018, continuing to produce and sell the A5 aircraft. As of my last update in January 2022, the company was operating, but I don't have the latest information beyond that.

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I just asked ChatGPT what day of the week it is. Apparently it’s Thursday. So much for intelligence.

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I just asked ChatGPT what day of the week it is. Apparently it’s Thursday. So much for intelligence.

Too funny!

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I tried again. Asking what’s going on with the Icon A5 and the bankruptcy.

ChatGPT
ICON Aircraft, the manufacturer of the ICON A5 amphibious light sport aircraft, filed for bankruptcy protection in 2017. The company faced financial challenges related to production delays and cost overruns. However, ICON Aircraft restructured and emerged from bankruptcy in 2018, continuing to produce and sell the A5 aircraft. As of my last update in January 2022, the company was operating, but I don't have the latest information beyond that.

When a Large Language Model like ChatGPT produces andwers like this, Machine Learning experts call it "hallucinations". See, for example, https://arxiv.org/abs/2401.11817

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When a Large Language Model like ChatGPT produces andwers like this, Machine Learning experts call it "hallucinations". See, for example, https://arxiv.org/abs/2401.11817

Looks like you know this stuff.

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Looks like you know this stuff.

I dabbled in Machine Learning. It is fun but tedious. Flying an Icon is a lot more fun!

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I dabbled in Machine Learning. It is fun but tedious. Flying an Icon is a lot more fun!

Im glad you understand it. It’s all Greek to me.

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Some updates on the process since the initial filing:

https://cases.stretto.com/public/x32...0000000008.pdf

The Stalking Horse Bid

On May 1, 2024, the Stalking Horse Bidder (defined below) delivered a copy of that certain Asset Purchase Agreement by and among Debtor ICON Aircraft, Inc., its Debtor affiliates, and SG Investment America, Inc. (the “Stalking Horse Bidder”) (as amended, supplemented, or otherwise modified by the parties thereto, and including the exhibits, schedules or attachments thereto, the “Stalking Horse APA”) to the Debtors that was executed by the Stalking Horse Bidder. The Stalking Horse APA contemplates the sale of substantially all of the Debtors’ assets to the Stalking Horse Bidder for (i) $13,000,000 in cash, plus (ii) the assumption of certain liabilities by the Stalking Horse Bidder (the “Purchase Price”).

A hearing to approve the Debtors’ designation of the Stalking Horse Bidder, along with the bid protections set forth in the Stalking Horse APA, is scheduled for May 21, 2024 at 3:00 p.m. (prevailing Eastern Time .

The Stalking Horse bid is detailed in the below filing, with more information on the purchaser.
https://cases.stretto.com/public/x32...0000000005.pdf

The purchaser is a newly formed subsidiary of Dürkopp Adler GmbH (“DA”), whose parent entity is ShangGong Group Co. Ltd. (“ShangGong”). PK Investment Co., Ltd. and PK Capital L.P. (collectively with their respective affiliates, “PDSTI”) are the largest stockholders of Debtor ICON Aircraft, Inc. and hold 51% of equity in in Shanghai Puke Flyingman Investment Co. Ltd., which holds 8.41% of equity in ShangGong.

ShangGong also indirectly holds a minority equity stake in Feiren International Co., Ltd. (the “DIP Lender”), which has provided funding to the Debtors under that certain Senior Secured, Superpriority Debtor-in-Possession Loan and Security Agreement (the “DIP Credit Agreement”).

The US Trustee objected on 5/15 to some of the language in the Purchase Agreement, specifically the breakup fee, and raised concern about the insider status of the purchasers.
https://cases.stretto.com/public/x32...0000000071.pdf

A revised version of the Purchase Agreement was filed on 5/17/24 where the Breakup Fee was removed.
https://cases.stretto.com/public/x32...0000000060.pdf

Kirk Hawkins also objected on 5/6 to the insider connections of the purchasers and asked for the process to be slowed down.
https://cases.stretto.com/public/x32...0000000035.pdf

The Bidding Procedures mask a flawed process that inevitably leads to an insider transaction that cannot survive the heightened scrutiny to which it is subject. The sale process should be stopped (or alternatively, slowed down) to permit a fulsome evaluation of the insider relationships in play.

The identity of the Proposed Stalking Horse Bidder reveals the continued attempts of the majority shareholder, Shanghai Pudong Science and Technology Investment Co., Ltd. (“PDSTI”), to exercise control and expropriate ICON’s IP to China.

The proposed buyer, SG Investment America, Inc. (the “Proposed Stalking Horse Bidder”), is a PDSTI related party. The Proposed Stalking Horse Bidder is an acquisition vehicle formed by Dürkopp Adler GmbH—a 160-year-old German sewing machine company (with no apparent aviation business)—owned by ShangGong Co. Ltd. (“SGG”). SGG and PDSTI are affiliates. PDSTI owns an indirect minority interest in SGG.6SGG also owns an indirect minority interest in the DIP Lender. Indeed, as just disclosed in the Stalking Horse Designation, SGG or one of its affiliates (PDSTI) may provide some or all of the funds for the remaining draws under the DIP Credit Agreement. SGG or one of its affiliates will also fund the Stalking Horse APA through an equity commitment, including the $1.3 million Purchaser Deposit (as defined in the Stalking Horse APA).

In a continuation of PDSTI’s prepetition practice of controlling the Debtors’ purse strings, the asset purchase agreement reveals that the Purchaser Deposit will fund the Debtors’ postpetition operations after June 6, 2024 if the sale does not close by then and the DIP Facility has been exhausted. The Debtors’ access to this additional liquidity is only with the Proposed Stalking Horse Bidder’s consent, and then, solely at its discretion.11 PDSTI’s use of this tactic precipitated these Chapter 11 Cases. As described in the Complaint, PDSTI deliberately strangled ICON’s cash flow as part of its plan to expropriate ICON’s assets to China.

While the Debtors do not mention it, PDSTI and SGG share directors and executives with close ties to the Chinese government. Notably, Min Zhang (“Zhang”), SGG’s Chairman, CEO and General Manager, was until recently, ICON’s Chairman of the Board. Zhu also selected ICON’s current President, Jason Huang. Zhang’s friend and business partner, Xudong Zhu (“Zhu”), is PDSTI’s Chairman, President and founding partner. Zhu also sits on SGG’s board. In sum, as of February 2022:

Upcoming important date

6/10/24 - Bid Deadline
6/13/24 10:00 AM ET - Auction
6/18/24 10:00 AM ET - Sale Hearing
6/27/24 10:00 AM ET - Sale Hearing if the Successful Bidder is not the Stalking Horse Bidder and is an insider

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Icon shared some further financials in a recent filing on 5/9/24.

Revenue
2024 $2,037,165.10
2023 $14,182,968.65
2022 $13,147,041.92

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I hope more bidders come forward and we get the “Edward Lewis” type who wants to build something instead of dismantle. Yeah, it’s a movie reference, but it’s all I I’ve got!

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https://aopa.org/news-and-media/all-...on-auction-set

The U.S. Bankruptcy Court for the District of Delaware has scheduled an asset auction for Icon on June 13 at 10 a.m. Eastern time with qualified bids due by June 10. The court will hold a confirmation hearing on June 18. The company filed for Chapter 11 bankruptcy April 4, and announced at the time a plan for Icon “to address its current challenges and emerge with new ownership—stronger than ever—and continue building amazing planes with a focus on innovation, safety, and incredible flying experiences.

”Icon announced May 3 the arrival of a stalking horse bidder, SG Investment America Inc., in an effort to establish a minimum price for its assets. The move is meant to aid in the bankruptcy process and provide the most value possible for stakeholders, the company said. The strategy also depends on at least one additional party, and preferably more, submitting higher bids.

“The decision to designate a stalking horse bidder underscores our commitment to ensuring the long-term viability of our business,” said Icon CEO Jerry Meyer. “We believe that this proactive approach will help employees, partners, and customers have confidence in our ongoing operations, enabling the company to achieve the best possible outcome.”

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Update on the Chapter 11: SG Investment America, Inc. (previously discussed) was the successful bidder at the auction. An entity named Linden Blue was the next highest bidder. Next is a court hearing on June 18, 2024, at 10:00 a.m. (EST), to "consider the approval of the sale of the Assets to the Successful Bidder free and clear of all liens, claims, and encumbrances"

https://cases.stretto.com/public/x32...0000000024.pdf

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I hope this progresses well and they keep building ICONs. Fingers crossed...

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Update on the Chapter 11: SG Investment America, Inc. (previously discussed) was the successful bidder at the auction. An entity named Linden Blue was the next highest bidder.

Linden Blue is a person and the one you actually wanted to win this auction as he has a lot of aerospace experience and likely represents the minority shareholders. See https://en.m.wikipedia.org/wiki/Linden_Blue. Linden was on the ICON board pre-chinese takeover so at and before 2015. The first Chinese board member was sat in 2015 and they eventually took majority control in 2017. The SG (Shan Gong) investments is repackaged version of current majority shareholders 100% Chinese. In my opinion this is not a good thing what so ever. You don't have to look for to see what happened to Terrafugia when Geely acquired it. Mooney and Glasair are other examples of Chinese takeover with no real upside or in the case of Glasair and XtremeAir closing the doors. Cirrus and Continental have an almost fool proof operations with a huge built in market so they just needed to stay the course.

Folks China is quickly buying General Aviation and not for the better. They now own Cirrus, Teledyne continental motors, Glassair, Terrafugia, Mooney, XtremeAir, and now soon to be ICON. China Doesn't have a sport or recreational aircraft market or even that many registered pilots so not sure their goal other than expatriating data back to China.

For what it’s worth these particular majority shareholders have run off a lot of ICON’s talent in the last 3.5 years.

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Linden Blue would have to out bid them at this point.

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Linden Blue would have to out bid them at this point. ??????

I'm not sure I follow you. He didn't out bid them which is clearly stated above. What are you asserting?

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No assertion, just not sure if they can out bid them today at the hearing to get the outcome you said would benefit us.
(sorry for the question marks confusing things, if I insert an emoji not from this site it swaps with ????)

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Ok now I get you haha, I don't think so. I have it on good accord this is unfortunately a done deal just needs to be approved by the judge (maybe it already has as it was today). In my dream world I would like to think the Judge says no due to the self and insider dealing but I don't think we live in that just of a world. We can always hope for the best though.

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I totally agree! Let’s hope ICON emerges back from CH11 like Vans